Sheetal Footwear Export, Agra V. I.T.O., Ward-4(4), Agra

ITA 294/AGR/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0390 (ITAT-AGRA)
• Duration Of Justice: 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-02-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 02-07-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: K C AGARWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 294/AGRA/2012 ASSTT. YEAR : 2008-09 SHEETAL FOOTWEAR EXPORT, VS. INCOME TAX OFFICER , 4, JOHNS MILL COMPOUND WARD 4(4), AGRA. JEONI MANDI, AGRA. (PAN: ABDFS 7650 L) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.C. AGARWAL, ADVOCATE RESPONDENT BY : SHRI WASEEM ARSHAD, SR. D.R. DATE OF HEARING : 18.02.2013 DATE OF PRONOUNCEMENT OF ORDER : 22.02.2013 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A)-II, AGRA DATED 06.03.2012 FOR THE ASSESSMENT YEAR 2008- 09. 2. ON GROUND NO. 1 & 2, THE ASSESSEE CHALLENGED DIS ALLOWANCE OF RS. 1,63,835/- MADE BY THE AO IN RESPECT OF FREIGHT PAI D TO ROSHAN FREIGHT CARRIER, AS THE ASSESSEE WAS LIABLE FOR TDS U/S. 40(A)(IA) P AID TO HIM. SIMILARLY, ON GROUND NO. 2, THE ASSESSEE CHALLENGED THE ADDITION OF RS.1,08,455/- PAID FOR ADVERTISEMENT TO KIRTI ADVERTISING UNDER THE SAME P ROVISION, BUT DID NOT DEDUCT ITA NO. 294/AGRA/2012 2 TDS. BOTH THE ABOVE ADDITIONS WERE MADE BY DISALLOW ING THE AMOUNT U/S. 40(A)(IA) OF THE IT ACT. THE LD. CIT(A) CONFIRMED THE ADDITION BECAUSE THE PROVISIONS OF SECTION 40(A)(IA) HAVE BEEN RIGHTLY I NVOKED IN THE CASE OF ASSESSEE FOR MAKING A DISALLOWANCE AND APPEAL OF THE ASSESSE E ON THESE GROUNDS WAS ACCORDINGLY DISMISSED. 3. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET S UBMITTED THAT HE WOULD NOT PRESS THESE GROUNDS BECAUSE THE ASSESSEE HAS PAID A ND DEPOSITED THE TAX ON 24.01.2013 IN RESPECT OF THE ABOVE DISALLOWANCE AND THE ASSESSEE WOULD SEEK DEDUCTION IN THE RELEVANT ASSESSMENT YEAR IN WHICH THE PAYMENTS HAVE BEEN MADE BY DEPOSITING TAX TO THE REVENUE DEPARTMENT. 4. ON CONSIDERATION OF THE ABOVE FACTS, WE ARE OF T HE VIEW THAT SINCE THE LD. COUNSEL FOR THE ASSESSEE DID NOT PRESS THESE GROUND S OF APPEAL, THEREFORE, THESE GROUNDS ARE DISMISSED AS NOT PRESSED BECAUSE ADMITT EDLY, THE PROVISIONS OF SECTION 40(A)(IA) ARE APPLICABLE ON THE PAYMENTS. A CCORDING TO PB-53, SINCE THE TAXES ON THESE PAYMENTS HAVE BEEN DEPOSITED WITH TH E REVENUE DEPARTMENT ON 24.01.2013, THEREFORE, THE ASSESSEE WOULD BE AT LIB ERTY TO SEEK DEDUCTION UNDER THE ABOVE PROVISION AS PER PROVISO ATTACHED TO THIS PROVISION IN ACCORDANCE WITH ITA NO. 294/AGRA/2012 3 LAW BEFORE THE AO IN THE YEAR OF THE PAYMENT OF TAX ES. THESE GROUNDS OF APPEALS OF THE ASSESSEE ARE ACCORDINGLY DISMISSED. 5. ON GROUND NO. 3 & 4, THE ASSESSEE CHALLENGED THE ADDITION OF RS.2,51,283/- FOR DISALLOWANCE OF INTEREST IN DEBIT BALANCE OF VISHAL DEEP MAHAJAN IMPREST ACCOUNT. THE ASSESSEE FILED DETAILE D WRITTEN SUBMISSIONS BEFORE THE LD. CIT(A), WHICH IS INCORPORATED IN THE APPELLATE ORDER. THE LD. CIT(A) INSTEAD OF GIVING ANY FINDING OF FACT ON THE SAME CONFIRMED THE ORDER OF THE AO WITHOUT GIVING ANY REASON FOR DECISION IN TH E APPELLATE ORDER. ACCORDING TO SECTION 250(6) OF THE IT ACT, THE LD. CIT(A) IS REQUIRED TO PASS THE ORDER GIVING REASONS FOR DECISION IN THE APPELLATE ORDER WHICH THE LD. CIT(A) HAS FAILED TO GIVE IN THIS CASE. THEREFORE, THE ORDER O F THE LD. CIT(A) SIMPLY AGREEING WITH THE ORDER OF THE AO AND DISMISSING TH E APPEAL OF THE ASSESSEE WOULD NOT BE JUSTIFIED. THE MATTER REQUIRES RECONSI DERATION AT THE LEVEL OF THE LD. CIT(A). WE, ACCORDINGLY, SET ASIDE THE ORDER OF THE LD. CIT(A) ON THIS ISSUE AND RESTORE THIS GROUND TO THE FILE OF LD. CIT(A) WITH DIRECTION TO RE-DECIDE THIS GROUND BY GIVING REASONS FOR DECISION IN THE APPELL ATE ORDER AND THE LD. CIT(A) SHALL GIVE REASONABLE SUFFICIENT OPPORTUNITY OF BEI NG HEARD TO THE ASSESSEE. IN THE RESULT, GROUND NO. 3 & 4 OF THE APPEAL OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. SINCE IT IS A SMALL ISSUE, TH EREFORE, THE LD. CIT(A) IS DIRECTED ITA NO. 294/AGRA/2012 4 TO DISPOSE OF THE APPEAL OF THE ASSESSEE ON THIS GR OUND WITHIN ONE MONTH FROM THE RECEIPT OF THE ORDER. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY